Market

When economic historians pen the decisive

chapter about the forces that catalysed the
emergence of India as a modern nation in terms
of the quantum of goods and services in the
twentieth century, the name Maruti Suzuki will
stand out as one of the brightest beacons. The
assessment of this unique company cannot be
made in simple categorisations such as market
share and production lines. For the saga of
Maruti Suzuki is the role it played and
continues to play in awakening ordinary
Indians to the ideas and concepts of quality,
service, mobility, expansion of markets, the
wonders of modern technology and a
discernible shift in the hierarchy of needs.
Maruti Suzuki changed not only the
automobile market a bellwether for economic
growth in most countries but India itself. The
country is expected to become the worlds
third largest automobile market by 2030, behind
just China and the US.
Market volumes have surged and demand for
all types of cars, from luxury models to SUVs to
mini-cars have scaled new heights. The small car
segment, however, still rules the Indian market
and Maruti Suzuki retains it supremacy and
primacy. In 1982, when the landmark Gurgaon
facility was set up, India bought barely 40,000
cars a year. Today, this number has multiplied
60 times to reach an extraordinary 2.40
million. In terms of sheer momentum,
and for the record, this is 33% higher than
1.80 million cars Indians bought in the previous
year. (Source: Society for Indian Automobile
Manufacturers SIAM).
Ownership penetration is still low 10 per
1000 as compared to some of the Asian
Tigers or the US. However, that is precisely why
the window of opportunity opens to an even
more promising future. A plethora of factors
multiple brand choices, infrastructural surge,
exploding rural markets and liquidity are
fuelling the steady acceleration. Through this
churn Maruti Suzuki, with a market share
exceeding 50%, remains the king of the road.
Achievements
Though more than 30 manufacturers offer
nearly 140 models to Indian car buyers, Maruti
Suzuki continues to keep hold of its leadership.
With palpable eminence, dependability,
performance, constancy, it dominates the largest
market segment affordable, value-packed, fuel-
efficient cars and is scoring significant
successes in fast-growing upper segments as
well. The company operates the nations largest
service network, with over 2920 workshops
spread over 1384 towns and cities (Source:
company data; correct to 28th February 2011).
In what auto industry analysts consider to
be the mother of all achievements, no car
manufacturer except Maruti Suzuki has been
ranked first in customer satisfaction, eleven
years in a row (Source: JD Power Customer
Satisfaction Index Study Asia-Pacific 2000/10).
The Wall Street Journal has rated it amongst the
Top Ten Most Admired Companies.
Having manufactured a staggering 10 million
cars, the company, not surprisingly, has the
highest number of cars on Indian roads.
In the social sphere, the new mobility granted
by the companys cars expanded vistas,
boosted travel and tourism sectors, galvanised
interstate commerce and energised consumers
to force governments to spend on infrastructure
that would ultimately go on to transform an
entire nation.
History
Maruti Suzuki was incorporated as Maruti
Udyog Limited (MUL) in 1981, as a joint venture
of the Indian government and Suzuki Motor
Corporation of Japan. The first Maruti 800 rolled
out on 14th December 1983 sparking off a
revolution in automobiles.
Other car launches followed and soon the
foundation for Indias largest service network
was laid.
In 1992, the Suzuki Motor Corporation
increased its stake to 50%. Ten years later,
when the government further divested its
holding, it bought a controlling interest in the
company, renaming itself Maruti Suzuki India
Limited (MSIL).
Osamu Suzuki was awarded the Padma
Bhushan in 2007, for his unparalleled
contribution to the Indian automobile industry.
After former Japanese Prime Minister, Y Mori, he
became only the second Japanese citizen to be
so honoured.
Maruti Suzuki crossed the one million
production mark in 1994 in just its 11th
year and in the next fifteen, added another
9 million.
Product
The Maruti 800 a sentimental journey on
wheels was Indias first hatchback; it was
introduced in 1983 and in its current avatar
28 years after launch still sells handsomely,
sealing for time immemorial Maruti Suzukis
description as The Small Car Wizard.
The Gypsy was Indias first true SUV and the
Omni was Indias first van that allowed for
smart space management. Both are still in
production. The Zen, Indias first cult car was
introduced in 1993 and was in
production until 2006. The
Maruti 1000, later renamed
Esteem, became the aspiring
sedan of its era.
The decade 1995/2005 was
a period of consolidation,
during which existing products
were upgraded and Wagon R,
Alto, Baleno and Grand Vitara
were introduced. After 2005,
Maruti Suzuki sprung a range
of products that have driven
growth. The Swift, introduced in
2005 in petrol and 2007 in
diesel, created a new segment
of premium hatchbacks. The
80 BUSINESS SUPERBRANDS
Third BUSINES Superbrands-2010-final 6/1/11 12:42 PM Page 80
strong demand for these cars brought back the
now-forgotten concept of a waiting period in
the Indian market. The stylish Zen Estilo
replaced the Zen in 2006.
In the meanwhile, the market for the A3
segment was beginning to emerge. To evolve
and gain a foothold in this grouping, Maruti
Suzuki introduced the SX4 sedan in May 2007.
In the SUV segment, the Grand Vitara with its
4x4 technology continues to woo users. But the
car that has possibly made more heads turn
than any other is the Dzire. It debuted in early
2008 and was followed by its diesel version.
Dzire Diesel rode on the back of the 1284cc
diesel engine that was voted the Engine of the
Year in Europe in 2006.
As with the Swift, the new generation of
Maruti Suzuki cars like the A-Star, Ritz and Alto
K10 has also struck a chord with the emerging
new India. In addition, the small car wizard has
launched its much awaited premium saloon,
Maruti Kizashi, and hurtled into the A4 segment
for the first time.
Recent Developments
With the increased role of MSIL in the global
operations of Suzuki, the company has
earmarked US$ 2 billion (Rs. 9000 crore) for
research in India. This is a major step in realising
Suzuki Motor Corporations commitment
to turning India into Asias R&D hub for
automobiles.
As a testament to this obligation, the
company introduced the countrys first original
factory-fitted CNG powered engines with the
revolutionary i-GPI technology in its five most
popular models of cars the Alto, the WagonR,
the SX4, the Estilo and the Eeco. Also, the
revolutionary K-Series engine has been
introduced in seven of the top models, which
makes these cars faster, more fuel efficient and
low on emissions leaner, meaner and fitter.
In addition to the Gurgaon facility with its
three fully integrated
assembly lines and an
installed capacity of 850,000
cars annually, the companys
Manesar plant, which is the
global hub in the Suzuki
world for making cars, has
been upgraded. It now
boasts of a capacity of
350,000 units annually. The
company is constructing two
new assembly lines in
Manesar with an installed
capacity of 250,000 each.
These are scheduled to be
commissioned by 2012.
Also functioning from
Manesar is the companys
diesel engine joint venture
Suzuki Powertrain India
Limited that also
manufactures
transmissions. It
currently produces
200,000 engines
annually. The
K-series plant,
located in Gurgaon,
has an installed
capacity of 500,000
engines per year.
Promotion
In Maruti Suzukis
scheme of things a
happy consumer
face is worth more
than just a redesigned grill or an upgraded
instrument panel. It is this philosophy that is
reflected in the companys communications.
Maruti Suzuki advertising is created to appeal to
both the heart and the head. Campaigns such as
Kaancha and Ki karein petrol khatam hi nahi
hunda are some of the memorable commercials
from the companys stables.
The mother-baby commercial is a striking
example of emphasising the companys superior
quality of service; the metaphor of a baby being
most comfortable in its mothers arms gently
yet forcefully drives home the point that a
Maruti Suzuki vehicle is best serviced at a
Maruti Suzuki service station.
Another commercial that pulls at the
consumers heartstrings is ghar agaya Hindustan
a personification of the emotional connect
that customers have with their Maruti
products. The tagline India comes home in a
Maruti is now indelibly etched in the hearts of
consumers. In addition, the Eeco commercial has
found its mark largely because of the witty
use of the unique animated dog which adds to
the comic badinage.
After nearly 30 years in India, Maruti Suzuki
understands the pulse of the nation and what
makes it tick. One of its earliest learnings is that
in cricket-crazy India, no company can afford to
ignore the commercial universe this game opens
up. The company has, therefore, developed
unique properties such as the Maruti Suzuki
Cricket Ratings to leverage itself.
The other learning has been Indias obsession
with mileage. It brought to surface this facet by
launching a steeped-in-the-soil pay off line
Kitna Deti Hai? To make light of this peculiarity, it
searched for the most unlikely situations and
came up with a fierce battle tank, a super luxury
yacht and even a space craft. The marriage of
the audio track with its video footage created
sheer magic. The commercials were quickly
hailed by industry pundits and, not surprisingly,
were rated by CNBC-TV18 to be amongst the
countrys best campaigns in 2010.
However, Maruti Suzuki is not all about
commercial success. The company is deeply
committed to improving life on the roads.
Towards achieving this end, it has partnered
with the government to develop the National
Road Safety Mission. It initiated and adopted, as
early as 2000, two channels to drive home the
message: the Maruti Driving School (MDS) and
the Institute of Driving, Training and Research
(IDTR). Currently there are 143 MDSs spread
across 102 cities and six IDTRs set up at Delhi,
Gujarat, Uttarakhand and Haryana. More than
550,000 people have so far been trained.
Brand Values
While individual brands in the companys
portfolio have their own positioning, they all
draw strength from the core Maruti Suzuki
values of trust and reliability. Indeed, it is
trust and reliability that has contributed to
Maruti Suzukis continued dominance of the
Indian market.
Seeing the behavioural shifts in todays
consumer, the company has of late endeavoured
to additionally infuse the brand with values of
youthfulness, dynamism and cutting-edge
technology attributes that NextGen seeks.
www.marutisuzuki.com
81 BUSINESS SUPERBRANDS
The Maruti Suzuki Swift has recently set a
Guinness World Record for the Largest Parade
of Maruti Swift cars in the Incredible Swift
Record of Records by bringing together 342 of
them in Gurgaon
Maruti Suzuki is the only car manufacturer in
India to be awarded the JD Power Asia-Pacific
Customer Satisfaction Index study, 11 times in
a row
Maruti Suzuki ranks amongst the top 10 Most
Admired Companies from India by Wall Street
Journal
It is the only car manufacturer in the country to
sell 1 million cars in one financial year
Things you didnt know about
Maruti Suzuki
Third BUSINES Superbrands-2010-final 6/1/11 12:42 PM Page 81